Commercial Management Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Commercial Management Agreement

"I need a Commercial Management Agreement for my retail chain in Hong Kong, where a professional management company will handle operations across 5 stores, including staff management and inventory control, starting from March 2025."

Document background
The Commercial Management Agreement is essential for businesses in Hong Kong seeking to delegate operational management to professional service providers while maintaining strategic control. This document is commonly used when a business owner wants to benefit from professional management expertise without transferring ownership, or when investors need professional management for their assets. The agreement, governed by Hong Kong law, typically includes detailed provisions for service scope, performance metrics, fee structures, operational controls, and compliance requirements. It's particularly relevant in situations involving complex operations, multi-location businesses, or specialized management needs, where professional management can enhance operational efficiency and business performance.
Suggested Sections

1. Parties: Identifies and defines the contracting parties - typically the business owner and the management company

2. Background: Explains the context and purpose of the agreement, including the business to be managed

3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules

4. Appointment and Scope: Details the appointment of the manager and scope of management services

5. Term and Renewal: Specifies the duration of the agreement and renewal provisions

6. Manager's Duties and Responsibilities: Comprehensive list of the manager's obligations and responsibilities

7. Client's Duties and Responsibilities: Outlines the obligations of the business owner/client

8. Fees and Payment Terms: Details management fees, payment schedule, and any performance-based compensation

9. Performance Standards: Establishes KPIs and minimum performance requirements

10. Reporting and Accountability: Specifies reporting requirements, frequency, and content

11. Compliance and Regulations: Addresses regulatory compliance requirements and responsibilities

12. Intellectual Property: Covers ownership and usage rights of intellectual property

13. Confidentiality: Details confidentiality obligations and protection of sensitive information

14. Liability and Indemnification: Addresses liability limitations and indemnification provisions

15. Termination: Specifies termination grounds, process, and consequences

16. Dispute Resolution: Outlines dispute resolution procedures and governing law

17. General Provisions: Includes standard boilerplate clauses like notices, amendments, and assignment

Optional Sections

1. Staff Management: Include when the manager will be responsible for hiring and managing staff

2. Insurance Requirements: Include when specific insurance coverage needs to be maintained by either party

3. Emergency Procedures: Include for businesses requiring specific emergency response protocols

4. Environmental Compliance: Include for businesses with significant environmental impact considerations

5. Marketing and Promotion: Include when manager is responsible for marketing activities

6. Property Management: Include when physical property management is part of the services

7. Data Protection: Include detailed data protection provisions when handling sensitive customer data

8. Non-Compete: Include when restricting manager's ability to work with competitors

9. Force Majeure: Include detailed force majeure provisions for high-risk or critical operations

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, including base fees and performance bonuses

3. Schedule 3 - Key Performance Indicators: Specific metrics and targets for performance measurement

4. Schedule 4 - Reporting Templates: Standard formats for required operational and financial reports

5. Schedule 5 - Operating Procedures: Detailed operational procedures and standards

6. Schedule 6 - Key Personnel: List of key management personnel and their roles

7. Schedule 7 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits

8. Appendix A - Power of Attorney: If required, specific powers granted to the manager

9. Appendix B - Compliance Checklist: List of regulatory requirements and compliance obligations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Hospitality

Retail

Healthcare

Education

Manufacturing

Professional Services

Technology

Entertainment

Logistics

Food and Beverage

Asset Management

Facilities Management

Property Development

Relevant Teams

Legal

Operations

Finance

Compliance

Risk Management

Business Development

Asset Management

Facilities Management

Contract Administration

Senior Management

Property Management

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

General Manager

Facility Manager

Property Manager

Legal Counsel

Contract Manager

Business Development Manager

Finance Director

Compliance Officer

Asset Manager

Regional Manager

Project Manager

Risk Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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